Ultimately, one can characterise stokvels as vehicles for saving towards a common goal.

Source: https://southafricatoday.net/lifestyle/personal-finance/south-africas-most-traditional-savings-methodology-is-surging-into-the-21st-century-but-a-cautious-approach-is-required-to-ensure-that-members-are-protected/

“We are asking residents to be extra cautious this and to always be on the lookout for too-good-to-be-true housing opportunity requests, stokvels relating to City or provincial housing opportunities, and other similar requests,” warned Pophaim.

Source: https://www.citizen.co.za/news/beware-of-festive-season-housing-scams-in-cape-town/